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We, at the Kubota Group, have missions to solve issues through the worldwide business in the fields of food, water and the environment and contribute to building a sustainable society and conserving the global environment. In 2014 we launched the Environmental Management Strategy Committee to deliberate over a medium- to long-term approach by management-led promotion. We have implemented the reduction of the environmental impacts, environmental risks and the expansion of environment-conscious products. This time, the Kubota Group newly formulated "Kubota Group Long-Term Environmental Conservation Target 2030" and "Kubota Group Medium-Term Environmental Conservation Target 2020" as our next targets in order to contribute to building a sustainable society as a sustainable company. We will enhance further environmental efforts in a planned manner from fiscal 2016.

Actions Items and Targets for 2030 in the "Long-Term Environmental Conservation Targets 2030"

Efforts to Stop Climate Change (Scope: Business Sites in Japan)

Reduce CO2 emission from the KUBOTA Group in Japan *1 by 30% compared to the base year 2014

Efforts to Develop Environment-Conscious Products

Increase the sales ratio of Eco-Products certified products*2 to 80%

Aim to put all new products which are certified as Eco-Products on the market in 2030 and later.

Actions Items and Targets for 2020 in the "Medium-Term Environmental Conservation Targets 2020"

Scope

Issues

Actions items

Management indicators*3

Base year

Targets for 2020

Global Production sites

Stopping Climate Change

Reduce CO2*1

CO2 emissions per unit of production

2014

-14%

Save energy

Energy consumption per unit of production

2014

-10%

Working towards a Recycling-based Society

Reduce waste

Waste discharge per unit of production

2014

-10%

Recycle ratio*4

Plants in Japan

-

More than 99.5%

Plants in other than Japan

-

More than 90%

Conserve water resources

Water consumption per unit of production

2014

-10%

Controlling Chemical Substance

Reduce VOC*5

VOC emissions per unit of production

2014

-10%

Products

Improving Product’s Environmental Performance

Expand Eco-Products

Sales ratio of Eco-Products*2

More than 60%

Promote recycling

Usage ratio of recycled materials*6

More than 70%

Develop vehicles compliant with gas emission regulation

Development of industrial diesel engines that comply with the latest emission regulations of Japan, the US and Europe and putting on the market of the engine-based products*7

*1:

CO2 emissions include greenhouse gases from non-energy sources. We use the emissions coefficient for electricity of the base year in our calculation of CO2 emissions from energy sources towards the target for 2020.

The figures per unit of production represent the intensity of the environmental impact per unit of production money amount. The exchange rate of the base year is used when translating the production money amount of overseas sites into Japanese yen.

VOCs comprise the six VOCs that are most prevalent in emissions from the Kubota Group: xylene, toluene, ethylbenzene, styrene, 1, 2, 4-trimethylbenzene, and 1, 3, 5-trimethylbenzene.

*6:

The scope of "ratio of recycled materials" (wt%) are materials used in casting products and components (ductile cast iron pipes, their fittings, mechanical castings (e.g. crankcases of engine)) manufactured by the Kubota Group.

*7:

The scope of the vehicles are tractors and combine harvesters equipped with engines which comply with the EU Regulations (Euro Stage IV) and other similar regulations, shipped to Europe, North America, Japan, and Korea (output range: 56 kW≦P<560 kW).